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09-12-05 Agenda Special/WS DELRAY BEACH D/< f L 0 . I 0 'II tIftr.tI Ø1 CITY COMMISSION All-AmnICIty CITY OF DELRAY BEACH. FLORIDA " II J! SPECIAL/WORKSHOP - MONDAY. SEPTEMBER 12, 2005 6:00 P.M. FIRST FLOOR CONFERENCE ROOM 1993 2001 The City will furnish appropriate auxiliary aids and servIces where necessary to afford an individual with a disability an equal opportunity to participate in and enJoy the benefits of a service, program, or activity conducted by the City. Contact Doug Randolph at 243-7127, 24 hours prior to the program or activity ill order for the CIty to reasonably accommodate your request. Adaptive listening devices are available for meetings in the CommissIon Chambers. SPECIAL MEETING AGENDA Pursuant to Section 3.12 of the Charter of the City of Delray Beach, Mayor Jeff Perlman has instructed me to announce a Special Meeting of the City Commission to be held for the following purposes: 1. LICENSE AGREEMENT/AMERICAN CITY ENTERTAINMENT, LLC: Consider approval of a license agreement between the CIty and American City Entertainment, IlL for events to be held at the Delray Stadium. 2. RESOLUTION NO. 69-05: Approve Resolution No. 69-05 authorizing filing a lawsuit regarding use of countywide revenues to fund Palm Beach County's Fire Rescue Dispatch System. 3. QUIET TITLE/602 S.W. 1ST STREET: Grant authorization to Quiet Tide on property located at 602 S.W. 1 ,t Street to use as a site for replacement housing for Carver Square. WORKSHOP AGENDA 1. Presentation of Community Redevelopment Agency (CRA) Budget 2. Presentation of Pompey Park Expansion Project 3. Presentation of Capital Budget for FY 2006-2010 4. Discussion regarding proposed budget for FY 2006 5. Commission Comments ............................................................................... Please be advised that If a person decides to appeal any decision made by the City Commission with respect to any matter considered at thIs meeting, such person will need to ensure that a verbatim record includes the testimony and eVIdence upon which the appeal is based. The City neither provides nor prepares such record. · ~ ~ LICENSE AGREEMENT THIS AGREEMENT made this _ day of September, 2005, by and between the CITY OF DELRA Y BEACH, FLORIDA, a municipal corporation of the State of Florida (hereinafter referred to as "City") and America's City Entertainment, LLC, (hereinafter referred to as "Licensee"). WITNE SS E TH: WHEREAS, City owns and controls certain land upon which is located the Delray Beach Stadium, and hereinafter called "Stadium"; and WHEREAS, Licensee wishes to hold certain non-tennis related Events at the Stadium; and WHEREAS, City has determined that it is in the public interest to enter into an exclusive agreement with Licensee for such Events to be held at the Stadium. NOW, THEREFORE, it is mutually agreed as follows: 1. Licensefferm. (a) Licensee has presented to the City that it would like to use the Stadium and access ways in Consideration for the sole purpose of presenting Events and Promoting the image of The City of Delray Beach. The term "Event(s)" is defined as all pop/rock/country/comedy/lectures/theatre/ non tennis related sporting events and contemporary musical shows or concerts. (b) The License shall be for the exclusive use of the Stadium during the Event, including an agreed upon time prior to and after the event. Licensee shall only hold Events at the Stadium that have previously been approved by the City, as provided for herein. Licensee shall provide a minimum of 3 Events annually during the term of this License. Licensee shall provide the City a minimum of 60 days notice prior to each Event. Licensee will be responsible for confirming with the City the availability of the Stadium for any Events that it may schedule. The City or other entities approved by the City shall be able to use the Stadium and schedule festivals or cultural events associated with the City for time periods in which the City has not received notice from Licensee that it will be holding an Event during that time period. 1 ~~\~~ ~:i - · ... (c) The term ofthis License shall be for a period of three (3) years, unless terminated as herein provided. This License may be renewed for an additional two (2) five (5) year terms at the election of Licensee with the same terms and conditions outlined in this original agreement. The start of do) "1'kLI~~.u..-ú~~~~~~la.. the term shall be date of this License as provided above. ~........,..r.... ~e.et.&.<otl u< 1'.u.A;¡ R~U-.5~1~í C~n.fe..\ ~v-IIJ t..'e.c...c~,,^w.Ú4~w,""" ~"if'''''~' to. L.1~s.<.c. ~ -(.ot1:J.. ~~J......4. 2. Purpose. The parties agree that Licensee shall promote and produce Events in a Þb~ld'- . LI~.I...&,-rs..t~ ~ manner which complies with community standards and appeals to the interest of the general public, and ~~ c:::.. use its best efforts to promote the Events at the Stadium. Licensee, at its sole cost and expense, shall provide management and personnel experienced in the promotion and production of the Event and for the purpose of supervising and directing Licensee's obligations under this Agreement. 3. Licensee's Ri!!hts for the Events. Licensee shall have authority, subject to the provisions and limitations set forth in this agreement, to enter into contracts or agreements to put on the Events. All such contracts shall be negotiated and executed by Licensee in its name and shall not be contracts and obligations of City. All contracts entered into by Licensee shall specifically contain language which provides that City is not a party to such agreement and is not obligated in any manner by any of the terms therein. The Licensee's rights are subject to the rights and limitations and obligations that currently exist between the City and Coca-Cola of Florida, Match Point Inc., Players International Management, Inc., and Ticketmaster-Florida, Inc. This Agreement shall also be subject to the terms and c( ~ r~~l<.ðÒ ~oe..r'GA- ~o ~(W.~ -r€.,.II'~ ~jj,~ conditions contained in the agreement for the Chris Evert teflRis e'l08t. Licensee also understands and agrees that it shall not be allowed to hold any Events at the Stadium as provided by the list of blackout dates as shown on Exhibit "A". However, Licensee agrees and understands, regarding the International Tennis Championships, if the A TP changes the dates that the tournament is to be played at the Stadium, Licensee and the City shall consent to such change as provided by the ATP. It is further provided, that if Match Point Inc., the entity that owns the International Tennis Championships and the City, agree, in writing, to allow an Event to occur during the time period that is blacked out, then such Event may occur. Licensee, its subcontractors, contract vendee's and any other entity doing business with Licensee related to the Stadium shall agree that their rights are subject to the other contracts listed in this Paragraph. 2 -- , ~ Licensee further agrees that prior to the commencement of any Events pursuant to this Agreement, Licensee shall comply with any and all licensing requirements and receive all necessary permissions, permits, approvals and license which are required in order to perform the activities under this Agreement. 4. City Approval of Event and Content. All individual entertainment or concerts must be . , approved by the City Manager prior to the concert event. Licensee hereby agrees to provide City with a right to review the content of the entertainment scheduled to take place at the Stadium, and Licensee hereby further agrees that if the City brings a timely written objection to the content of any Event due to, but not limited to, the obscene, immoral or lewd nature of the proposed entertainment or event, Licensee shall not schedule and/or cancel the Event at no cost or penalty to City. City in turn agrees not to unreasonably withhold approval for any Event, and will withhold approval only when the City Manager makes a written determination that an Event has content that would be inappropriate for this venue. Furthermore, Licensee agrees that it will make a good faith effort to only schedule entertainment which does not contain obscenity or lewd and lascivious behavior. City shall review all scheduled Events, and r'Y1""'~('" if the City Man¡er determines that the content of the Event will contain these inappropriate and objectionable materials, a written notice of rejection shall be sent to Licensee by certified mail, return receipt requested, within seven (7) calendar days from the date notice of the Event is provided to City. Licensee may bring an appeal of the City Manager's decision before the City Commission at the next available regular Commission meeting following compliance with public advertisement laws. 5. Schedulin2: Events and Conflicts. Licensee shall have the exclusive right to schedule such Events at the Stadium (subject only to City's right to review the nature and content of the event shall not conflict with other events at the Stadium, Licensee shall check with City to determine that the proposed event shall not conflict with other events. City shall provide at least one hundred twenty (120) days notice to Licensee of City's events to be held at the Stadium except for UST A sanctioned events in which case a forty-five (45) day notice if not sooner will be given if possible. Licensee shall provide to City through the City Manager or his/her designee, on a monthly basis, a current calendar of events 3 , scheduled at the Stadium. Licensee also acknowledges and agrees that requests to utilize the Stadium from various community and not-for-profit groups will not be unreasonably withheld. Additionally, City shall be authorized to schedule and utilize the Stadium for City festivals or cultural events or events in which City is a co-sponsor provided such events do not conflict with events previously scheduled by Licensee and Licensee shall receive no compensation for City's use. Licensee may assist the City in obtaining talent for the City events, if the City so desires. Any scheduled rain out date will require City approval at least thirty days prior to the event. 6. Facilities and Services Provided bv City. Unless otherwise herein specified, City shall be responsible for, or agrees to provide, the following facilities and production assistance in connection with the conduct of and staging of the Event: (a) use of the Stadium; (b) all electrical, water and sewer utilities and one on-site electrician (all costs and expenses are Licensee's responsibility) for the duration of the Event based upon an approved cost schedule; (c) Adequate space for and operation of concessions, retail booths, etc. (Licensee shall place and operate the concessions and retain all revenues from its concessions and retail booths); (d) restroom facilities and supplies (Licensee shall be responsible for cost of supplies and cleanup of any facilities); (e) use of areas and facilities for entertainer lounge and dressing area, event staff and technicians, press, volunteers, and concessionaires as available and suitable and as mutually agreed to. In the event areas are not available or suitable Licensee shall be responsible for same. Areas will include tables, chairs, furniture and air conditioning as mutually agreed to (Licensee shall be responsible for the preparation of such areas as well as the cleanup of such areas after the Event); (f) on and off-site directional signage (Licensee shall pay for the costs of City directional signage for each Event); (g) all necessary permits (Licensee shall pay all costs for permitting); 4 (h) mutually agreed upon marketing support of the Event; (i) maintenance personnel to maintain and clean the restrooms as well as garbage pickup during and post event (Licensee shall be responsible for cost of personnel); (j) personnel to assist with issues involving the Stadium during the Event (Licensee shall be responsible for cost of personnel); and (k) Garbage dumpsters (Licensee shall be responsible for cost of dumpsters). 7. Staeine and Production of the Event. The organization, staging, and conduct of the Event will be the responsibility of the Licensee, which responsibilities shall include the following: (a) handling ticket and box office sales; (b) Obtaining an Event Director, all personnel involved in the Event, and the Event participants; (c) Administering the entire Event; (d) Setting up each Event on-site and handling all activities of the Event, including set up and tear down of the stage, and lighting and sound systems; (e) Soliciting sponsorship sales and television rights sales for the Event; (f) Handling promotions, advertising, sales, public relations, and program production for the Event; (g) Liaising with the charity beneficiaries selected by Licensee for the Event; (h) Licensee is responsible for the cost of covering courts if the courts need to be covered as determined by the City; (i) Licensee shall pay for all expenses relating to phone usage by Licensee, including, but not limited to, hook-up, dial tone, and usage charges; (j) Licensee shall handle and be responsible for all security measures concerning the Event, including, but not limited to, the box office and ticket sales; and 5 (k) Licensee shall be responsible for all other costs associated with preparing the Stadium for each Event that has not been specifically stated in this Agreement, including, but not limited to, providing a stage, lighting system or sound system, and any other utility cost not previously mentioned as well as upgrading or changing any equipment associated with the Stadium. 8. Ticketmaster. (a) City, or its designee, shall permit the use ofthe box office services during the day of the Event, at a time that is mutually agreeable to both parties, and one (1) Ticketmaster ticketing machine. The City has entered into an exclusive agreement with Ticketmaster-Florida, Inc., which provides that all tickets must be purchased through Ticketmaster. Furthermore, nothing in this Agreement shall be contrary to any provision in the agreement between the City and Ticketmaster- Florida, if it is determined by a court of competent jurisdiction that any provision of this Agreement is contrary to any provision of the agreement between the City and Ticketmaster-Florida, then the provisions found in the agreement between the City and Ticketmaster-Florida shall govern. (b) City shall pay one hundred percent (100%) of all amounts due to Licensee within 48 hours after the City receives a check from Ticketmaster-Florida, Inc. If Licensee fails to hold the Event as scheduled, Licensee shall be responsible to Ticketmaster-Florida, Inc., for all refunds incurred as a result of the cancellation or rescheduling, up to the face amount of the ticket price per ticket purchased and refunded plus any additional credit card fees that may be imposed. (c) Licensee has the right to act on behalf of the City in collection of any past due monies from Ticketmaster as provided in the existing agreements and addendums. 9. Improvements. Licensee shall provide all improvements to the Stadium or entryway to the Stadium as necessary for each Event. This shall be done at Licensee's sole cost and expense and only after the prior approval of the City, where such approval may be withheld by the City, in its sole discretion. If Licensee undertakes such improvements, the improvements shall be made in accordance with all building codes and regulations as well as any other applicable rules or regulations governing such 6 improvement. The improvements shall also be made to the satisfaction of the City and shall in no way interfere with the use of the Stadium by the City. Once such improvements are completed they may also be used by the City, if it so desires. If the City does not desire to allow the improvements to remain, Licensee shall remove such improvements within a reasonable period of time as requested by the City. Prior to the start of the construction of any improvement, the City shall have the right to require from Licensee a payment and performance bond, in the amount of 110% of the improvement cost as well as 10% warranty bond for a one year period, in a form acceptable to the City. 10. Independent Contractor Status. It is understood between the parties that the relationship of City and Licensee is that of an independent contractor. Licensee shall have no authority to employ any person as an employee or agent on behalf of the City for any purpose. Neither Licensee or any person engaging in any work relating to Licensee's rights and obligations set forth herein at the request of or with the consent (whether actual or implied) of Licensee shall be deemed an employee or agent of City, nor shall any such person represent himself to others as an employee or agent of City. Should any person indicate to Licensee or any employee or agent of Licensee, by written or oral communication to Licensee, that the person believes Licensee or an employee or agent of Licensee to be an employee or agent of City, Licensee shall use its best efforts to correct or cause its employee or agent to correct that belief. 11. Compliance with Licensine: Requirements. Licensee, prior to commencement of any activities pursuant to the provisions of this agreement, shall comply with applicable federal, state, county and City requirements, laws, rules and regulations and all licensing requirements and receive all necessary permissions, permits, approvals and licenses which are required to perform the activities of producer and promoter as set forth herein. 12. Compliance with Laws. Licensee agrees to comply with all applicable federal, state, county, and local laws and regulations regarding non-discrimination and specifically agrees not to discriminate against any person on the basis of color, race, religion, age, creed, sex, national origin or disability . 7 13. Concession Rie:hts. The Licensee has the sole and exclusive right to sell or give away food and beverages and any and all other consumables, and to control the concessions referred to above and to approve the sale or give away of the above during the time of the Event. Licensee shall not have the right and shall not offer for sale or give away any items reserved to Coca-Cola of Florida by Agreement with the City. Licensee, its agents or assigns, shall have the limited right to engage in concessions with regard to merchandise. All concessions must be approved 48 hours in advance of scheduled Event by the City or its designee. The City reserves the right to reject the sale of any and all concessions 48 hours before the Event. However, in no event shall the sale of any facsimile of any weapon, silly string, poppers or any similar item be allowed. (This provision may also be enforced by the City Police Department). In addition, Licensee may provide temporary structures at its own expense, for the sale of concession items provided that the size, construction and location of such temporary structures shall not impede the normal and safe flow of vehicular and pedestrian traffic and shall comply with all applicable laws and regulations. In providing the merchandise concession service, Licensee or any person, firm or corporation with whom a contract for such purpose (hereinafter referred as "Concessionaire") shall comply with the following provisions provided, however, that Licensee shall remain ultimately responsible to City for all obligations required of the Concessionaire: (a) Concessionaire shall, prior to commencing any activities, obtain any and all permits and licenses that may be required in connection with the operation of this concession. (b) Concessionaire shall not sell or give away or otherwise dispose of any commodity which in the opinion of the City shall cause undue litter. (c) All food, confections, beverages and refreshments, etc., sold or kept for sale shall be first class and quality, wholesome and pure, and in accordance with Department of Health requirements and shall conform to all federal, state, county and municipal laws, ordinances, rules and regulations in all respects. (d) Concessionaire may, at its expense, furnish additional equipment and fixtures to be utilized in the concession. Concessionaire shall submit plans and specifications concerning fixtures 8 and equipment to City for approval at least one week prior to installation of any items. For the purpose of this agreement, "fixture" shall be defined as anything annexed or affixed to a building or structure or which appears to be so affixed or annexed, regardless of whether it is capable of being removed. (e) The Concessionaire shall provide all maintenance, repair and service required on all equipment used on the concession. (t) Concessionaire shall keep all fixtures, equipment and personal property, whether owned by Concessionaire or City, in a clean and sanitary condition and shall cleanse, fumigate, disinfect and deodorize as required and whenever directed to do so by City. All state health laws and state health department regulations must be strictly complied with. All janitorial services necessary in concession area shall be provided by Concessionaire at Concessionaire's expense. (g) Concessionaire agrees to dispose of all refuse and garbage, in compliance with all applicable laws, ordinances and health codes, at Concessionaire's expense, and to keep outside container areas cleaned at all times. (h) If the concession is operated by a person, firm or corporation other than Licensee, such person, firm or corporation shall at all times maintain workers' compensation insurance coverage for all employees which it employs within the areas and facilities covered by this Agreement, together with the policy or policies of public liability and products liability insurance and provides limits of at least One Million ($1,000,000.00) Dollars for combined single limit coverage; and provide fire legal liability in the amount of Five Hundred Thousand ($500,000.00) Dollars. Such policies shall provide that they will not be canceled or amended without at least ten (10) days written notice to the Risk Manager of City and shall name City, and its designee, its officers, agents and employees as additional insured. 14. Event Personnel and Equipment. Licensee shall provide all personnel needed for the Event, including, but not limited to, ticket sellers, ticket takers, ushers, sound technicians and stage hands. Licensee shall be responsible for the installation or removal of any additional staging or sound and/or 9 lighting which is to be utilized for the Event or any other equipment of any type or nature which is needed for the Event. Licensee shall designate a management representative in a timely manner that will coordinate the Event with the City and its designee. Licensee shall be responsible for the cost of all chair rentals that may be required and the cost of all staging, lighting and sound equipment, except as otherwise stated in this Agreement. Licensee shall be responsible for the cost of all repairs needed to the Stadium when repairs are not the result of normal wear and tear. Licensee and the City's designee shall perform a "walk through" before and after the Event. 15. Police. Security and Emerl!:encv Personnel. Licensee agrees to make arrangements with the City Police Department and City's designee to provide for City police personnel which the City determines, in its sole discretion, is necessary for the Event. Licensee shall pay the officers at a rate to be determined by the City based on an analysis of the number of officers available to work the event, the number of officers required by the event and other factors within the sole discretion of the City. Licensee shall, at least thirty (30) days prior to the Event, consult with the Chief of Police or his designee and the City's designee to determine the proper scheduling of security for the Event and the rate that will be applicable for the Event. Also, Licensee shall contact the City Fire Department and the City's designee to make arrangements for Emergency Medical Service personnel to be present at the Event at Licensee's expense. Licensee may use private security personnel inside the Stadium. Licensee shall pay for all costs for police, security and emergency personnel. 16. "Set-Up". "Tear-Down" and "Clean-Up". Licensee shall be responsible for personnel and equipment necessary for set-up prior to the Event and tear-down and clean-up at the Stadium upon completion of the Event. Clean-up shall include, but not limited to, removal of all debris, equipment, staging, tables, chairs and any other concert or event-related equipment. In all cases, clean-up from an event shall be complete within twenty-four (24) hours after the completion of the event. If the clean-up is not completed within twenty-four (24) hours, the City shall perform the clean-up and shall then bill the actual cost of clean-up, in addition to any other expenses to Licensee. Said costs shall be 10 paid by Licensee within thirty (30) days. Furthermore, Licensee is required to have a supervisor present during all "tear-down" and clean-up operations. 17. Eiectment from Property. City at all times reserves the right to eject or cause to be ejected from the premises any person or persons violating or to keep from violating any of the rules or regulations of the City, County, State or Federal laws, and neither City nor any of its officers, agents or employees shall be liable in any manner to Licensee or its officers, agents, or employees for any damages which may be sustained by Licensee through the exercise of this right by City. 18. City's Rieht to Control Premises. City or its designee at all times reserves the right to eject or cause to be ejected from the premises any person or persons violating (or to keep persons from violating) any of the rules or regulations of the City or any county, state or federal laws, and neither the City, its designee nor any of its officers, agents or employees for any damages which may be sustained by Licensee through the exercise of this right by City or its designee. 19. Parkine. Sienaee and Traffic Control. The City shall provide parking spaces on City owned or controlled property for the Event which the City, in its sole discretion, determines it can make available without adversely impacting other public parking needs. Licensee shall staff and manage such parking. Licensee may provide onsite signage upon the prior approval of the City, which approval shall not be unreasonably withheld. City shall provide traffic control, barricades and signs, as it deems necessary, in its sole discretion, and Licensee shall pay for the entire cost of providing such traffic control. 20. Insurance. Licensee shall obtain insurance at its own cost and expense of the type, nature, and amount and pursuant to the terms which are set forth on Exhibit "B" which is attached hereto and incorporated herein by reference. The City and its designee shall be named additional insured on all insurance certificates. 21. Rieht to Enter. City and its designee and authorized agents and employees shall have the right to enter upon the subject premises at any and all reasonable times for the purpose of inspection and observation of Licensee's operation to assure that requirements of this agreement are upheld and that 11 no violations of the rules, statutes, ordinances or regulations have occurred or are occurring. Said inspections may be made by persons identified to Licensee as City employees or City designees authorized for such inspection or may be made by independent contractors engaged by City or its designee. Nothing contained herein shall be deemed a waiver of Licensee's obligation to hold the Event as provided in this Agreement. 22. Retention ofPropertv Riehts bv City. City shall retain the authority to enter to inspect and to perform repairs and maintenance as City deems necessary of the Stadium during the term of this Agreement and may make such changes and alterations therein, and in the grounds surrounding same, as may be determined by City. City shall provide Licensee with reasonable notice prior to City's making any change or alteration in the Stadium and appurtenances, and City shall consult with Licensee in connection with the timing of such change and alterations provided, however, that the final decision as to timing shall be in the sole discretion of City. City shall have the right during the term of this Agreement after notice and consultation is provided above to make changes, alterations and improvements in the premises and to the buildings and facilities located thereon, as it may determine. City will endeavor to schedule any work contemplated herein so as to not disrupt any scheduled events. 23. Conclusion of Peñormance. All performances shall end no later than II :00 P.M., unless otherwise approved by the City. 24. Floorine for Stadium. The City shall provide, at Licensees' option, up to 10,000 square feet of temporary flooring for the Event. Licensee shall be responsible for paying all costs up to and not to exceed three thousand five hundred (US$3,500.00) for installation removal and storage of the initial 10,000 square feet of flooring. The City shall be responsible for the actual installation removal of the floor and the adequacy of said floor in protecting the court. If more than 10,000 square feet of flooring is required by Licensee, then Licensee shall pay all costs involved in obtaining such additional flooring and for all costs of installation of the additional flooring. 12 25. Notice of Defects. Licensee shall report safety deficiencies or any defects it notices on the premises immediately to City's Risk Manager and the City's designee and shall cooperate fully with City and its designee in the investigation of accidents incurring on the subject premises. 26. Indemnification. Licensee does hereby release and agree to indemnify, defend, save, and hold harmless the City, its designees, officers, agents and employees from and against all claims, actions, causes of action, demand, judgments, costs, expenses, and all damages of every kind in nature incurred by or on behalf of any corporation, person, or governmental authority, whatsoever predicated upon injury or death of any person or loss over damaged property of whatsoever ownership, or copyright infringement arising out of or connected with, directly or indirectly, Licensee's operation pursuant to the terms of this agreement, whether or not the incident giving the rise to the injury, death, loss or damage occurs within or without the premises. Licensee shall indemnify, defend and hold harmless the City regarding its selection of Events and any persons or entities associated with those Events held at the Stadium. Licensee understands and is aware that there are certain indemnification provisions in some of the agreements referred to in Paragraph 3 in which the City has agreed to indemnify other parties. Licensee agrees to defend, indemnify and hold harmless the City regarding those indemnification provisions. Licensee further agrees to pay the City for reasonable property damage to the Stadium that occurs during the production of an Event or in a reasonable time before or after the event by Licensee. Licensee shall make such payment to the City within thirty (30) days of such written request by the City. 27. Release. Licensee acknowledges and agrees that City, its designee, officers, agents and employees assume no responsibility whatsoever for any property, excluding court and flooring provided by City, placed in the premises provided for herein and City, its designee, officers, agents and employees are expressly released and discharged from any and all liability for any loss, injury, damage, theft, vandalism or other wrongful acts or acts of any kind or nature resulting in damage or loss to persons or property which may be sustained by Licensee's use of the premises. Licensee further expressly waives 13 any and all claims for compensation for any and all loss or damages sustained by reason of any defects, deficiencies, or impairment of the electrical or sound equipment, water supply, equipment or wires furnished for the premises or by reason of any loss or impairment of light, current, or water supply which may occur from time to time for any cause, or by reason of any loss or damaged sustained by Licensee resulting from fire, water, hurricane, tornado, civil commotion, riot, theft or other acts of God, and Licensee hereby expressly waives all right, claims and demands and forever releases and discharges City, its designee, officers, agents and employees from any and all demands, claims actions and causes of actions arising from any of the causes aforesaid. City shall maintain and repair all improvements to the existing stadium and property used by licensee to ensure reliability and safety of said property. 28. Taxes. Licensee shall pay any and all taxes levied on the property by reason of Licensee's use thereof pursuant to the provisions of this Agreement and on any personal property and improvements belonging to Licensee located on the premises and all existing applicable sales, use, rental and other taxes which may be levied against its operation. 29. License; Fees. (a) Licensee shall pay to the City all costs or estimated costs as provided in this Agreement. Licensee shall pay these costs to the City within five days after the event. If Licensee fails to pay the required amount within the stated time period, the City may, at its sole discretion, terminate this Agreement or reduce the funds due Licensee from the Ticketrnaster sales in the same amount due the City. (b) Licensee shall pay for all police and fire personnel provided by the City for the Event. The City shall provide an estimate of the cost to Licensee and Licensee shall pay the total estimated cost to the City within five (5) days after the event. Within five (5) business days of receiving the final bill from the City for such services, Licensee shall pay any remaining balance to the City or the City shall refund any amount that was paid over the final cost. If Licensee fails to pay the required amount within the stated time period, the City may, at its sole discretion, terminate this Agreement or reduce the funds due Licensee from the Ticketmaster sales in the same amount due the City. 14 (c) During the term of this Agreement and all renewals, Licensee shall not be charged a facility fee. Licensee will pay City after the first year of this agreement and all years after provided in this agreement a $1.00 fee per ticket sold above 1500 tickets. Licensee shall provide to the City all records necessary regarding the generation of this fee. 30. Stadium Capacity and Complimentarv Tickets. Licensee shall not admit to the Stadium a larger number of persons than the approved capacity will safely accommodate. City shall receive twenty (20) admission tickets at no charge. 31. Advertisine: Revenue. Licensee shall be entitled to retain all advertising and sponsorship revenues generated by advertisers or sponsors of the Event promoted by Licensee at the Stadium; provided, however, that the City and its designee, jointly with Licensee, shall have the right to approve all advertising and its location. If the City sells naming rights for the Stadium and/or Tennis Center it is then agreed that the Licensee will agree to not enter into agreements with sponsors that are in conflict with the naming rights sponsor. 32. Failure to Pay. Other than the payments referred to in Paragraph 29 which are to be paid as provided in Paragraph 29, if Licensee neglects to make any other payments to City within ten (10) business days after the day on which the payment is due and owing and Licensee has been adequately noticed, Licensee shall pay to City for such privilege, an additional charge of Twenty-five ($25.00) Dollars per day for each day's delay in payment, retroactive to and beginning with the first day of the delinquency or the City may assess interest at 12%, whichever is greater. City's right to assess the penalties for payment made later than the day upon which payment is due and to keep all deposits in the event of cancellation shall be in addition to its right to terminate the license and its rights to seek all other damages and compensation as permitted by law, upon written notice. 33. Waiver of Breach. Neither the waiver by City or its designee of any breach of the Agreement, condition or provision of this Agreement or the failure of City or its designee to seek redress for violation of or to insist upon strict performance of, any agreement, condition or provision, shall be 15 considered a waiver of the Agreement, condition or provision, or any subsequent breach of any Agreement, condition or provision. The waiver of any portion of this Agreement for a portion of the term of the Agreement shall not be deemed to extend for the entire term of the Agreement. No provision of this Agreement may be waived except by written agreement signed by the City and Licensee. 34. Controlline Law. This agreement shall be deemed to be made and shall be in accordance with the laws of the State of Florida which will be controlling in any dispute that arises pursuant to this Agreement. 35. Entire Aereement. This Agreement constitutes the entire agreement between City and Licensee and may not be altered, amended, or modified except by an instrument in writing signed by the parties to the agreement with all the same formalities as this agreement. 36. Force Maieure. Strikes and Unavoidable Causes. City shall not be responsible fort its failure to make the premises available or to provide the facilities and services described herein, where such performance is rendered impossible and impractical due to strikes, walk- outs, acts of God, inability to obtain labor, materials or services, government restriction (other than City), enemy action, civil commotion, fire, unavoidable casualty, utility disruptions or blackouts, or similar causes or any other causes beyond the control of City. 37. Sublicense and Assienment. Licensee shall not sublicense the subject premises or any party thereof or allow the same to be used or occupied by an person or for any other use than that herein specified, nor assign said Agreement nor transfer, assign or in any manner convey any of the rights or privileges herein granted without the written consent of City. Neither this Agreement nor the rights herein granted shall be assignable or transferable by any process or proceeding in any court, or by attachment, execution, proceedings, insolvency, or bankruptcy either voluntary or involuntary or receivership proceedings. 38. Notice. Any notice or communication under this agreement shall be in writing and may be given by registered or certified mail. If given by registered or certified mail, the notice or communication shall be deemed to have been given and received when deposited in the 16 United States Mail, properly addressed, with postage prepaid. If given otherwise, than by registered or certified mail, it should be deemed to have been given when delivered to and received by the party to whom it is addressed. The notices and communication shall be given to the particular parties at the following addresses: City: David Harden, City Manger City of Delray Beach 100 N.W. 1st Avenue Delray Beach, Florida 33444 Licensee: Morgan N. Russell, Managing Member America's City Entertainment, LLC. 117 N.E. 2nd Ave. Delray Beach, Florida 33444 Michael Simon, Esquire Simon, Sigalos & Spyredes 120 East Palmetto Park Road Boca Raton, Florida 33432 Either party may at any time by giving ten (10) days written notice designate any other person or entity or any other address in substitution of the foregoing to which the notice or communication shall be given. 41. City's Name/Lo!:o. The City shall have its name/logo included in all print, radio, and television advertising created by Licensee to promote the Event. The City name/logo shall not be used in any contract that is not family oriented. 42. Subtitles and Captions. Paragraph headings are for reference purposes only and in the event that such paragraph headings conflict with any of the substantive paragraphs of this Agreement, the paragraph headings shall be disregarded. 43. Bond Limitations. (a) It is recognized by Licensee that the Stadium has been financed with proceeds of tax exempt debt and may be re-financed from time to time in the future and that the Internal Revenue Code of 1986, as amended, limits the private use of governmentally owned facilities constructed with tax 17 exempt debt, such as a tennis stadium, in order to maintain the tax exempt status of the debt issued to finance the same. (b) Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall terminate with any required notice and reasonable time to cure by Licensee by the City, if any payment required to be made under the provisions of this Agreement to the City would, together with any other private use payments made or required to be made by any other entity(ies) or person(s) for the use of the tennis center or related facilities, adversely affect the exclusion from gross income for federal income tax purposes on any interest obligation (herein "negative tax consequences") of the City issued to finance or refinance the tennis center or any part thereof. Such a termination shall not constitute a default on the part of either party to this Agreement. Upon such termination, it is the intent of the parties hereto to enter into a new agreement which would contain different or modified payment terms and/or amounts acceptable to both of the parties hereto, and which, in the opinion of the City's bond counsel, would not have negative tax consequences. 44. Termination or Cancellation of Al!:reement. This Agreement may be terminated by the City if one of the following occurs. (a) Institution of proceedings in voluntary bankruptcy by the Licensee. (b) Institution of proceedings in involuntary bankruptcy against the Licensee if such proceedings lead to adjudication of bankruptcy and the Licensee fails within ninety (90) days to have such adjudication reversed. (c) If Licensee shall fail, neglect or refuse within fifteen (15) business days and other reasonable time to cure by Licensee after receiving notice thereof from City to conform to any direction or instruction that may be property given by City or to any applicable law, ordinance of regulation of the City, County, State, or Federal government, or shall fail, neglect or refuse to pay any amount due hereunder within thirty (30) calendar days after the same shall become due or shall default in the performance of any of the material terms or provisions herein required, it shall then be lawful for City, at its option, to declare this Agreement terminated and forfeited and City may, in addition to other remedies 18 available to City, thereupon re-enter and possess itself of all the rights and privileges therefore enjoyed by Licensee, and in the event that Licensee shall remain in possession one (1) day or more after such termination or forfeiture, Licensee shall be deemed guilty of a forcible trespass. (d) If Licensee fails to provide 3 Events during each year of this Agreement, the City, in its sole discretion, may terminate this Agreement. 45. City's Desi!!nee. For the purpose of this Agreement, the City's designee shall be JCD Sports Group, Inc., or its designee, unless the City notifies Licensee to the contrary. 46. This Agreement is not effective until signed by both parties. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their proper officials on the day and year first above written. ATTEST: CITY OF DELRA Y BEACH, FLORIDA By: By: City Clerk Jeff Perlman, Mayor Approved as to Form: By: City Attorney WITNESSES: By: (Name printed or typed) Morgan Russell, Managing Member (Name printed or typed) 19 · STATE OF COUNTY OF The foregoing instrument was acknowledged before me this day of September, 2005, by Morgan Russell as Managing Member of America's City Entertainment, LLC, a Florida limited liability company, on behalf of the company. He is personally known to me. Signature of Person Taking Acknowledgment Name Typed, Printed or Stamped 20 · f4 MEMORA.NDUM TO: David T. Harden, City Manager FROM: r~Robert Barcinski, Assistant City Manager DATE: September 10, 2005 SUBJECT: AGENDA ITEM # S~.i - SPECIAL MEETING SEPTEMBER 12. 2005 LICENSE AGREEMENT /TENNIS STADIUM AND CENTER ACTION City Commission is requested to consider approval of a proposed license agreement between the City and American City Entertainment, LLC for the use of the Tennis Stadium and site for events. BACKGROUND Attached is a proposed agreement between the City and American Entertainment, ILC to hold a minimum of three (3) events per year ill the Tennis Stadium. Events are defined as "all pop/rock/country/comedy/lectures/theater non-tennis sporting events and contemporary musical shows or concerts" . Highlights and other information concerning this agreement are as follows: 1. Term - Three (3) years which may be renewed by the Licensee without City consent for additional two (2), five (5) year terms. 2. Payments to City - Licensee to pay all City direct costs for police, fire, private security, stage setup, flooring, utilities, other City staff costs, signage, clean up and trash removal. JCD Sports Group staff costs and other costs. 3. Rental and Facility Fees - The proposal includes no rental or facility fees for the first year of the agreement. After the first year, the City would reserve a facility fee of $1.00 per ticket for all tickets sold over 1,500. 4. Accounting and Auditing - Unlike previous agreements, audit and accounting requirements only apply to funds due to the City versus total event revenue and expenses. 5. Security Deposit - The Licensee proposes not to be required to provide a security deposit for non- performance due to the financial risks they are taking. However, they have agreed to a ticket refund policy. 6. Blackout Dates - Exhibit "A" lists the minimum number of Blackout dates that we felt we needed to have to accommodate existing contracts and to minimize impacts on staffing and parking. 7. Parking - As proposed, the Licensee would be responsible for parking versus the City. Mr. Morgan and his staff will be available to answer any questions. RECOMMENDATION Staff recommends consideration of approval of the proposed license agreement between the City and American City Entertainment, LLC for the use of the Tennis Stadium and Center for events. Barcmslu Memo Lcense Agreement 2005 09-12-05 doc LICENSE AGREEMENT THIS AGREEMENT made this _ day of September, 2005, by and between the CITY OF DELRA Y BEACH, FLORIDA, a municipal corporation of the State of Florida (hereinafter referred to as "City") and America's City Entertainment, LLC, (hereinafter referred to as "Licensee"). WITNE SSE TH: WHEREAS, City owns and controls certain land upon which is located the Delray Beach Stadium, and hereinafter called "Stadium"; and WHEREAS, Licensee wishes to hold certain non-tennis related Events at the Stadium; and WHEREAS, City has determined that it is in the public interest to enter into an exclusive agreement with Licensee for such Events to be held at the Stadium. NOW, THEREFORE, it is mutually agreed as follows: 1. Licensefferm. (a) Licensee has presented to the City that it would like to use the Stadium and access ways in Consideration for the sole purpose of presenting Events and Promoting the image of The City of Delray Beach. The term "Event(s)" is defined as all pop/rock/country/comedy/lectures/theatre/ non-tennis related sporting events and contemporary musical shows or concerts. (b) The License shall be for the exclusive use of the Stadium during the Event, including an agreed upon time prior to and after the event. Licensee shall only hold Events at the Stadium that have previously been approved by the City, as provided for herein. Licensee shall provide a minimum of 3 Events annually during the term of this License. Licensee shall provide the City a minimum of 60 days notice prior to each Event. Licensee will be responsible for confirming with the City the availability of the Stadium for any Events that it may schedule. The City or other entities approved by the City shall be able to use the Stadium and schedule festivals or cultural events associated with the City for time periods in which the City has not received notice from Licensee that it will be holding an Event during that time period. 1 (c) The term of this License shall be for a period of three (3) years, unless terminated as herein provided. This License may be renewed for an additional two (2) five (5) year terms at the election of Licensee with the same terms and conditions outlined in this original agreement. The start of the term shall be date ofthis License as provided above. 2. Purpose. The parties agree that Licensee shall promote and produce Events in a manner, which complies with community standards and appeals to the interest of the general public, and use its best efforts to promote the Events at the Stadium. Licensee, at its sole cost and expense, shall provide management and personnel experienced in the promotion and production of the Event and for the purpose of supervising and directing Licensee's obligations under this Agreement. 3. Licensee's Ril!hts for the Events. Licensee shall have authority, subject to the provisions and limitations set forth in this agreement, to enter into contracts or agreements to put on the Events. All such contracts shall be negotiated and executed by Licensee in its name and shall not be contracts and obligations of City. All contracts entered into by Licensee shall specifically contain language, which provides that City is not a party to such agreement and is not obligated in any manner by any of the terms therein. The Licensee's rights are subject to the rights and limitations and obligations that currently exist between the City and Coca-Cola of Florida, Match Point Inc., Players International Management, Inc., and Ticketmaster-Florida, Inc. This Agreement shall also be subject to the terms and conditions contained in the agreement for the Chris Evert tennis event, which is renewed each year. Licensee also understands and agrees that it shall not be allowed to hold any Events at the Stadium as provided by the list of blackout dates as shown on Exhibit "A". However, Licensee agrees and understands, regarding the International Tennis Tournament, if the A TP changes the dates that the tournament is to be played at the Stadium, Licensee shall consent to such change as provided by the A TP. It is further provided, that if Match Point Inc., the entity that owns the International Tennis Tournament, agrees, in writing, to allow an Event to occur during the time period that is blacked out, then such Event may occur. Licensee, its subcontractors, contract vendee's and any other entity doing business with 2 Licensee related to the Stadium shall agree that their rights are subject to the other contracts listed in this Paragraph. Licensee further agrees that prior to the commencement of any Events pursuant to this Agreement, Licensee shall comply with any and all licensing requirements and receive all necessary permissions, permits, approvals and license which are required in order to perform the activities under this Agreement. 4. City Approval of Event and Content. All individual entertainment or concerts must be approved by the City Manager prior to the concert event. Licensee hereby agrees to provide City with a right to review the content of the entertainment scheduled to take place at the Stadium, and Licensee hereby further agrees that if the City brings a timely written objection to the content of any Event due to, but not limited to, the obscene, immoral or lewd nature of the proposed entertainment or event, Licensee shall not schedule and/or cancel the Event at no cost or penalty to City. City in turn agrees not to unreasonably withhold approval for any Event, and will withhold approval only when the City Manger makes a written determination that an Event has content that would be inappropriate for this venue. Furthermore, Licensee agrees that it will make a good faith effort to only schedule entertainment, which does not contain obscenity or lewd and lascivious behavior. City shall review all scheduled Events, and if the City Manger determines that the content of the Event will contain these inappropriate and objectionable materials, a written notice of rejection shall be sent to Licensee by certified mail, return receipt requested, within seven (7) calendar days from the date notice of the Event is provided to City. Licensee may bring an appeal of the City Manager's decision before the City Commission at the next available regular Commission meeting following compliance with public advertisement laws. 5. Schedulinl! Events and Conflicts. Licensee shall have the exclusive right to schedule such Events at the Stadium (subject only to City's right to review the nature and content of the event shall not conflict with other events at the Stadium, Licensee shall check with City to determine that the proposed event shall not conflict with other events. City shall provide at least one hundred eighty (180) days notice to Licensee of City's events to be held at the Stadium. Licensee shall provide to City through 3 the City Manager or hislher designee, on a monthly basis, a current calendar of events scheduled at the Stadium. Licensee also acknowledges and agrees that requests to utilize the Stadium from various community and not-for-profit groups will not be unreasonably withheld. Additionally, City shall be authorized to schedule and utilize the Stadium for City festivals or cultural events or events in which City is a co-sponsor provided such events do not conflict with events previously scheduled by Licensee and Licensee shall receive no compensation for City's use. Licensee may assist the City in obtaining talent for the City events, if the City so desires. 6. Facilities and Services Provided bv Citv. Unless otherwise herein specified, City shall be responsible for, or agrees to provide, the following facilities and production assistance in connection with the conduct of and staging ofthe Event: (a) Use of the Stadium; (b) All electrical, water and sewer utilities and one on-site electrician (all costs and expenses are Licensee's responsibility) for the duration of the Event based upon an approved cost schedule; (c) Adequate space for and operation of concessions, retail booths, etc. (Licensee shall place and operate the concessions and retain all revenues from its concessions and retail booths); (d) Restroom facilities and supplies (Licensee shall be responsible for cost of supplies and cleanup of any facilities); (e) Use of areas and facilities for entertainer lounge and dressing area, event staff and technicians, press, volunteers, and concessionaires as available and suitable and as mutually agreed to. In the event areas are not available or suitable Licensee shall be responsible for it. Areas will include tables, chairs, furniture and air conditioning as mutually agreed to (Licensee shall be responsible for the preparation of such areas as well as the cleanup of such areas after the Event); (t) On and off-site directional signage (Licensee shall pay for the costs of City directional signage for each Event); (g) All necessary permits (Licensee shall pay all costs for permitting); 4 (h) Mutually agreed upon marketing support of the Event; (i) Maintenance personnel to maintain and clean the restrooms as well as garbage pickup during and post event (Licensee shall be responsible for cost of personnel); G) Personnel to assist with issues involving the Stadium during the Event (Licensee shall be responsible for cost of personnel); and (k) Garbage dumpsters (Licensee shall be responsible for cost of dumpsters). 7. Staeine and Production of the Event. The organization, staging, and conduct of the Event will be the responsibility of the Licensee, which responsibilities shall include the following: (a) Handling ticket and box office sales; (b) Obtaining an Event Director, all personnel involved in the Event, and the Event participants; (c) Administering the entire Event; (d) Setting up each Event on-site and handling all activities of the Event, including set up and tear down of the stage, and lighting and sound systems; (e) Soliciting sponsorship sales and television rights sales for the Event; (t) Handling promotions, advertising, sales, public relations, and program production for the Event; (g) Liaising with the charity beneficiaries selected by Licensee for the Event; (h) Licensee is responsible for the cost of covering courts if the courts need to be covered as determined by the City; (i) Licensee shall pay for all expenses relating to phone usage by Licensee, including, but not limited to, hook-up, dial tone, and usage charges; (j) Licensee shall handle and be responsible for all security measures concerning the Event, including, but not limited to, the box office and ticket sales; and 5 (k) Licensee shall be responsible for all other costs associated with preparing the Stadium for each Event that has not been specifically stated in this Agreement, including, but not limited to, providing a stage, lighting system or sound system, and any other utility cost not previously mentioned as well as upgrading or changing any equipment associated with the Stadium. 8. Ticketmaster. (a) City, or its designee, shall permit the use of the box office services during the day of the Event, at a time that is mutually agreeable to both parties, and one (I) Ticketmaster ticketing machine. The City has entered into an exclusive agreement with Ticketmaster-Florida, Inc., which provides that all tickets must be purchased through Ticketmaster. Furthermore, nothing in this Agreement shall be contrary to any provision in the agreement between the City and Ticketmaster- Florida, if it is determined by a court of competent jurisdiction that any provision of this Agreement is contrary to any provision of the agreement between the City and Ticketmaster-FIorida, then the provisions found in the agreement between the City and Ticketmaster-Florida shall govern. (b) City shall pay one hundred percent (100%) of all amounts due to Licensee within 48 hours after the City receives a check from Ticketmaster-Florida, Inc. If Licensee fails to hold the Event as scheduled, Licensee shall be responsible to Ticketmaster-Florida, Inc., for all refunds incurred as a result of the cancellation or rescheduling, up to the face amount of the ticket price per ticket purchased and refunded plus any additional credit card fees that may be imposed. (c) Licensee has the right to act on behalf of the City in collection of any past due monies from Tìcketmaster as provided in the existing agreements and addendums. 9. Improvements. Licensee shall provide all improvements to the Stadium or entry way to the Stadium as necessary for each Event. This shall be done at Licensee's sole cost and expense and only after the prior approval of the City, where the City, in its sole discretion, may withhold such approval. If Licensee undertakes such improvements, the improvements shall be made in accordance with all building codes and regulations as well as any other applicable rules or regulations governing such 6 improvement. The improvements shall also be made to the satisfaction of the City and shall in no way interfere with the use of the Stadium by the City. Once such improvements are completed the City may also use them, if it so desires. If the City does not desire to allow the improvements to remain, Licensee shall remove such improvements within a reasonable period of time as requested by the City. Prior to the start of the construction of any improvement, the City shall have the right to require from Licensee a payment and performance bond, in the amount of 110% of the improvement cost as well as 10% warranty bond for a one year period, in a form acceptable to the City. 10. Independent Contractor Status. It is understood between the parties that the relati80nship of City and Licensee is that of an independent contractor. Licensee shall have no authority to employ any person as an employee or agent on behalf of the City for any purpose. Neither Licensee or any person engaging in any work relating to Licensee's rights and obligations set forth herein at the request of or with the consent (whether actual or implied) of Licensee shall be deemed an employee or agent of City, nor shall any such person represent himself to others as an employee or agent of City. Should any person indicate to Licensee or any employee or agent of Licensee, by written or oral communication to Licensee, that the person believes Licensee or an employee or agent of Licensee to be an employee or agent of City, Licensee shall use its best efforts to correct or cause its employee or agent to correct that belief. 11. Compliance with Licensine Requirements. Licensee, prior to commencement of any activities pursuant to the provisions of this agreement, shall comply with applicable federal, state, county and City requirements, laws, rules and regulations and all licensing requirements and receive all necessary permissions, permits, approvals and licenses which are required to perform the activities of producer and promoter as set forth herein. 12. Compliance with Laws. Licensee agrees to comply with all applicable federal, state, county, and local laws and regulations regarding non-discrimination and specifically agrees not to discriminate against any person on the basis of color, race, religion, age, creed, sex, national origin or disability . 7 13. Concession Ri2hts. The Licensee has the sole and exclusive right to sell or give away food and beverages and any and all other consumables, and to control the concessions referred to above and to approve the sale or give away of the above during the time of the Event. Licensee shall not have the right and shall not offer for sale or give away any items reserved to Coca-Cola of Florida by Agreement with the City. Licensee, its agents or assigns, shall have the limited right to engage in concessions with regard to merchandise. All concessions must be approved 48 hours in advance of scheduled Event by the City or its designee. The City reserves the right to reject the sale of any and all concessions 48 hours before the Event. However, in no event shall the sale of any facsimile of any weapon, silly string, poppers or any similar item be allowed. (This provision may also be enforced by the City Police Department). In addition, Licensee may provide temporary structures at its own expense, for the sale of concession items provided that the size, construction and location of such temporary structures shall not impede the normal and safe flow of vehicular and pedestrian traffic and shall comply with all applicable laws and regulations. In providing the merchandise concession service, Licensee or any person, firm or corporation with whom a contract for such purpose (hereinafter referred as "Concessionaire") shall comply with the following provisions provided, however, that Licensee shall remain ultimately responsible to City for all obligations required of the Concessionaire: (a) Concessionaire shall, prior to commencing any activities, obtain any and all permits and licenses that may be required in connection with the operation of this concession. (b) Concessionaire shall not sell or give away or otherwise dispose of any commodity, which in the opinion of the City shall cause undue litter. (c) All food, confections, beverages and refreshments, etc., sold or kept for sale shall be first class and quality, wholesome and pure, and in accordance with Department of Health requirements and shall conform to all federal, state, county and municipal laws, ordinances, rules and regulations in all respects. (d) Concessionaire may, at its expense, furnish additional equipment and fixtures to be utilized in the concession. Concessionaire shall submit plans and specifications concerning fixtures 8 and equipment to City for approval at least one week prior to installation of any items. For the purpose of this agreement, "fixture" shall be defined as anything annexed or affixed to a building or structure or which appears to be so affixed or annexed, regardless of whether it is capable of being removed. (e) The Concessionaire shall provide all maintenance, repair and service required on all equipment used on the concession. (t) Concessionaire shall keep all fixtures, equipment and personal property, whether owned by Concessionaire or City, in a clean and sanitary condition and shall cleanse, fumigate, disinfect and deodorize as required and whenever directed to do so by City. All state health laws and state health department regulations must be strictly complied with. Concessionaire shall provide all janitorial services necessary in concession area at Concessionaire's expense. (g) Concessionaire agrees to dispose of all refuse and garbage, in compliance with all applicable laws, ordinances and health codes, at Concessionaire's expense, and to keep outside container areas cleaned at all times. (h) If the concession is operated by a person, firm or corporation other than Licensee, such person, firm or corporation shall at all times maintain workers' compensation insurance coverage for all employees which it employs within the areas and facilities covered by this Agreement, together with the policy or policies of public liability and products liability insurance and provides limits of at least One Million ($1,000,000.00) Dollars for combined single limit coverage; and provide fire legal liability in the amount of Five Hundred Thousand ($500,000.00) Dollars. Such policies shall provide that they will not be canceled or amended without at least ten (10) days written notice to the Risk Manager of City and shall name City, and its designee, its officers, agents and employees as additional insured. 14. Event Personnel and Equipment. Licensee shall provide all personnel needed for the Event, including, but not limited to, ticket sellers, ticket takers, ushers, sound technicians and stagehands. Licensee shall be responsible for the installation or removal of any additional staging or sound and/or 9 lighting which is to be utilized for the Event or any other equipment of any type or nature which is needed for the Event. Licensee shall designate a management representative in a timely manner that will coordinate the Event with the City and its designee. Licensee shall be responsible for the cost of all chair rentals that may be required and the cost of all staging, lighting and sound equipment, except as otherwise stated in this Agreement. Licensee shall be responsible for the cost of all repairs needed to the Stadium when repairs are not the result of normal wear and tear. Licensee and the City's designee shall perform a "walk through" before and after the Event. 15. Police. Security and Emere:encv Personnel. Licensee agrees to make arrangements with the City Police Department and City's designee to provide for City police personnel, whom the City determines, in its sole discretion, is necessary for the Event. Licensee shall pay the officers at a rate to be determined by the City based on an analysis of the number of officers available to work the event, the number of officers required by the event and other factors within the sole discretion of the City. Licensee shall, at least thirty (30) days prior to the Event, consult with the Chief of Police or his designee and the City's designee to determine the proper scheduling of security for the Event and the rate that will be applicable for the Event. Also, Licensee shall contact the City Fire Department and the City's designee to make arrangements for Emergency Medical Service personnel to be present at the Event at Licensee's expense. Licensee may use private security personnel inside the Stadium. Licensee shall pay for all costs for police, security and emergency personnel. 16. "Set-Up". "Tear-Down" and "Clean-Up". Licensee shall be responsible fore personnel and equipment necessary for set-up prior to the Event and teardown and clean up at the Stadium upon completion of the Event. Clean up shall include, but not limited to, removal of all debris, equipment, staging, tables, chairs and any other concert or event-related equipment. In all cases, clean up from an event shall be complete within twenty-four (24) hours after the completion of the event. If the clean-up is not completed within twenty-four (24) hours, the City shall perform the clean-up and shall then bill the actual cost of clean-up, in addition to any other expenses) to Licensee. Licensee shall pay 10 said costs within thirty (30) days. Furthermore, Licensee is required to have a supervisor present during all "tear-down" and clean-up operations. 17. Eiectment from Property. City at all times reserves the right to eject or cause to be ejected from the premises any person or persons violating or to keep from violating any of the rules or regulations of the City, County, State or Federal laws, and neither City nor any of its officers, agents or employees shall be liable in any manner to Licensee or its officers, agents, or employees for any damages which may be sustained by Licensee through the exercise of this right by City. 18. City's Ri!!ht to Control Premises. City or its designee at all times reserves the right to eject or cause to be ejected from the premises any person or persons violating (or to keep persons ITom violating) any of the rules or regulations of the City or any county, state or federal laws, and neither the City, its designee nor any of its officers, agents or employees for any damages which may be sustained by Licensee through the exercise ofthis right by City or its designee. 19. Parkin!!. Si!!na!!e and Traffic Control. The City shall provide parking spaces on City owned or controlled property for the Event, which the City, in its sole discretion, determines it can make available without adversely impacting other public parking needs. Licensee shall staff and manage such parking. Licensee may provide onsite signage upon the prior approval of the City, which approval shall not be unreasonably withheld. City shall provide traffic control, barricades and signs, as it deems necessary, in its sole discretion, and Licensee shall pay for the entire cost of providing such traffic control. 20. Insurance. Licensee shall obtain insurance at its own cost and expense of the type, nature, and amount and pursuant to the terms which are set forth on Exhibit "B" which is attached hereto and incorporated herein by reference. The City and its designee shall be named additional insured on all insurance certificates. 21. Ri!!ht to Enter. City and its designee and authorized agents and employees shall have the right to enter upon the subject premises at any and all reasonable times for the purpose of inspection and observation of Licensee's operation to assure that requirements of this agreement are upheld and that 11 -- -~~- no violations of the rules, statutes, ordinances or regulations have occurred or are occurring. Said inspections may be made by persons identified to Licensee as City employees or City designees authorized for such inspection or may be made by independent contractors engaged by City or its designee. Nothing contained herein shall be deemed a waiver of Licensee's obligation to hold the Event as provided in this Agreement. 22. Retention of Property Rii!hts bv City. City shall retain the authority to enter to inspect and to perform repairs and maintenance, as City deems necessary of the Stadium during the term of this Agreement and may make such changes and alterations therein, and in the grounds surrounding same, as may be determined by City. City shall provide Licensee with reasonable notice prior to City's making any change or alteration in the Stadium and appurtenances, and City shall consult with Licensee in connection with the timing of such change and alterations provided, however, that the final decision as to timing should be in the sole discretion of City. City shall have the right during the term of this Agreement after notice and consultation is provided above to make changes, alterations and improvements in the premises and to the buildings and facilities located thereon, as it may determine. City will endeavor to schedule any work contemplated herein so as to not disrupt any scheduled events. 23. Conclusion of Peñormance. All performances shall end no later than 11 :00 P.M., unless otherwise approved by the City. 24. Floorini! for Stadium. The City shall provide, at Licensees' option, up to 10,000 square feet of temporary flooring for the Event. Licensee shall be responsible for paying all costs up to and not to exceed three thousand five hundred (US$3,500.00) for installation removal and storage of the initial 10,000 square feet of flooring. The City shall be responsible for the actual installation removal of the floor and the adequacy of said floor in protecting the court. If more than 10,000 square feet of flooring is required by Licensee, then Licensee shall pay all costs involved in obtaining such additional flooring and for all costs of installation of the additional flooring. 12 25. Notice of Defects. Licensee shall report safety deficiencies or any defects it notices on the premises immediately to City's Risk Manager and the City's designee and shall cooperate fully with City and its designee in the investigation of accidents incurring on the subject premises. 26. Indemnification. Licensee does hereby release and agree to indemnify, defend, save, and hold harmless the City, its designees, officers, agents and employees from and against all claims, actions, causes of action, demand, judgments, costs, expenses, and all damages of every kind in nature incurred by or on behalf of any corporation, person, or governmental authority, whatsoever predicated upon injury or death of any person or loss over damaged property of whatsoever ownership, or copyright infringement arising out of or connected with, directly or indirectly, Licensee's operation pursuant to the terms of this agreement, whether or not the incident giving the rise to the injury, death, loss or damage occurs within or without the premises. Licensee shall indemnify, defend and hold harmless the City regarding its selection of Events and any persons or entities associated with those Events held at the Stadium. Licensee understands and is aware that there are certain indemnification provisions in some of the agreements referred to in Paragraph 3 in which the City has agreed to indemnify other parties. Licensee agrees to defend, indemnify and hold harmless the City regarding those indemnification prOVISIOns. Licensee further agrees to pay the City for reasonable property damage to the Stadium that occurs during the production of an Event or in a reasonable time before or after the event by Licensee. Licensee shall make such payment to the City within thirty (30) days of such written request by the City. 27. Release. Licensee acknowledges and agrees that City, its designee, officers, agents and employees assume no responsibility whatsoever for any property, excluding court and flooring provided by City, placed in the premises provided for herein and City, its designee, officers, agents and employees are expressly released and discharged from any and all liability for any loss, injury, damage, theft, vandalism or other wrongful acts or acts of any kind or nature resulting in damage or loss to persons or property which may be sustained by Licensee's use of the premises. Licensee further expressly waives 13 any and all claims for compensation for any and all loss or damages sustained by reason of any defects, deficiencies, or impairment of the electrical or sound equipment, water supply, equipment or wires furnished for the premises or by reason of any loss or impairment of light, current, or water supply which may occur from time to time for any cause, or by reason of any loss or damaged sustained by Licensee resulting from fire, water, hurricane, tornado, civil commotion, riot, theft or other acts of God, and Licensee hereby expressly waives all right, claims and demands and forever releases and discharges City, its designee, officers, agents and employees ITom any and all demands, claims actions and causes of actions arising from any of the causes aforesaid. City shall maintain and repair all improvements to the existing stadium and property used by licensee to ensure reliability and safety of said property. 28. Taxes. Licensee shall pay any and all taxes levied on the property by reason of Licensee's use thereof pursuant to the provisions of this Agreement and on any personal property and improvements belonging to Licensee located on the premises and all existing applicable sales, use, rental and other taxes which may be levied against its operation. 29. License; Fees. (a) Licensee shall pay to the City all costs or estimated costs as provided in this Agreement. Licensee shall pay these costs to the City within five days after the event. If Licensee fails to pay the required amount within the stated time period, the City may, at its sole discretion, terminate this Agreement or reduce the funds due Licensee from the Ticketmaster sales in the same amount due the City. (b) Licensee shall pay for all police and fire personnel provided by the City for the Event. The City shall provide an estimate of the cost to Licensee and Licensee shall pay the total estimated cost to the City within five (5) days after the event. Within five (5) business days of receiving the final bill from the City for such services, Licensee shall pay any remaining balance to the City or the City shall refund any amount that was paid over the final cost. If Licensee fails to pay the required amount within the stated time period, the City may, at its sole discretion, terminate this Agreement or reduce the funds due Licensee from the Ticketmaster sales in the same amount due the City. 14 (c) During the term of this Agreement and all renewals, Licensee shall not be charged any facility fee or fees. 30. Stadium Capacity and Complimentarv Tickets. Licensee shall not admit to the Stadium a larger number of persons than the approved capacity will safely accommodate. City shall receive twenty (20) admission tickets at no charge. 31. Advertisine Revenue. Licensee shall be entitled to retain all advertising and sponsorship revenues generated by advertisers or sponsors of the Event promoted by Licensee at the Stadium; provided, however, that the City and its designee, jointly with Licensee, shall have the right to approve all advertising and its location. 32. Failure to Pay. Other than the payments referred to in Paragraph 29 which are to be paid as provided in Paragraph 29, if Licensee neglects to make any other payments to City within ten (10) business days after the day on which the payment is due and owing and Licensee has been adequately noticed, Licensee shall pay to City for such privilege, an additional charge of Twenty-five ($25.00) Dollars per day for each day's delay in payment, retroactive to and beginning with the first day of the delinquency or the City may assess interest at 12%, whichever is greater. City's right to assess the penalties for payment made later than the day upon which payment is due and to keep all deposits in the event of cancellation shall be in addition to its right to terminate the license and its rights to seek all other damages and compensation as permitted by law, upon written notice. Licensee is responsible for all ticket refunds for any of Licensee's events that are due Ticket Master Due to Cancellation for any reason. If the City is required to refund any amount of ticket sales then the licensee is required to reimburse City for said refunds. 34. Waiver of Breach. Neither the waiver by City or its designee of any breach of the Agreement, condition or provision of this Agreement or the failure of City or its designee to seek redress for violation of or to insist upon strict performance of, any agreement, condition or provision, shall be 15 considered a waiver of the Agreement, condition or provision, or any subsequent breach of any Agreement, condition or provision. The waiver of any portion of this Agreement for a portion of the term of the Agreement shall not be deemed to extend for the entire term of the Agreement. No provision ofthis Agreement may be waived except by written agreement signed by the City and Licensee. 35. Controlline Law. This agreement shall be deemed to be made and shall be in accordance with the laws of the State of Florida which will be controlling in any dispute that arises pursuant to this Agreement. 36. Entire Aereement. This Agreement constitutes the entire agreement between City and Licensee and may not be altered, amended, or modified except by an instrument in writing signed by the parties to the agreement with all the same formalities as this agreement. 37. Force Maieure. Strikes and Unavoidable Causes. City shall not be responsible fort its failure to make the premises available or to provide the facilities and services described herein, where such performance is rendered impossible and impractical due to strikes, walk-outs, acts of God, inability to obtain labor, materials or services, government restriction (other than City), enemy action, civil commotion, fire, unavoidable casualty, utility disruptions or blackouts, or similar causes or any other causes beyond the control of City. 38. Sublicense and Assienment. Licensee shall not sublicense the subject premises or any party thereof or allow the same to be used or occupied by an person or for any other use than that herein specified, nor assign said Agreement nor transfer, assign or in any manner convey any of the rights or privileges herein granted without the written consent of City. Neither this Agreement nor the rights herein granted shall be assignable or transferable by any process or proceeding in any court, or by attachment, execution, proceedings, insolvency, or bankruptcy either voluntary or involuntary or receivership proceedings. 39. Notice. Any notice or communication under this agreement shall be in writing and may be given by registered or certified mail. If given by registered or certified mail, the notice or communication shall be deemed to have been given and received when deposited in the United States 16 Mail, properly addressed, with postage prepaid. If given otherwise, than by registered or certified mail, it should be deemed to have been given when delivered to and received by the party to whom it is addressed. The notices and communication shall be given to the particular parties at the following addresses: City: David Harden, City Manger City of Delray Beach 100 N.W. 1st Avenue Delray Beach, Florida 33444 Licensee: Morgan N. Russell, Managing Member America's City Entertainment, LLC. 117 N.E. 2nd Ave. Delray Beach, Florida 33444 Michael Simon, Esquire Simon, Sigalos & Spyredes 120 East Palmetto Park Road Boca Raton, Florida 33432 Either party may at any time by giving ten (10) days written notice designate any other person or entity or any other address in substitution of the foregoing to which the notice or communication shall be given. 41. City's Name/Lo!!o. The City shall have its name/logo included in all print, radio, and television advertising created by Licensee to promote the Event. The City name/logo shall not be used in any contract that is not family oriented. 42. Subtitles and Captions. Paragraph headings are for reference purposes only and in the event that such paragraph headings conflict with any of the substantive paragraphs of this Agreement, the paragraph headings shall be disregarded. 43. Bond Limitations. (a) It is recognized by Licensee that the Stadium has been financed with proceeds of tax exempt debt and may be re-financed from time to time in the future and that the Internal Revenue Code of 1986, as amended, limits the private use of governmentally owned facilities constructed with tax 17 --- exempt debt, such as a tennis stadium, in order to maintain the tax exempt status of the debt issued to finance the same. (b) Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall terminate with any required notice and reasonable time to cure by Licensee by the City, if any payment required to be made under the provisions of this Agreement to the City would, together with any other private use payments made or required to be made by any other entity (ies) or person(s) for the use of the tennis center or related facilities, adversely affect the exclusion from gross income for federal income tax purposes on any interest obligation (herein "negative tax consequences") of the City issued to finance or refinance the tennis center or any part thereof. Such a termination shall not constitute a default on the part of either party to this Agreement. Upon such termination, it is the intent of the parties hereto to enter into a new agreement which would contain different or modified payment terms and/or amounts acceptable to both of the parties hereto, and which, in the opinion of the City's bond counsel, would not have negative tax consequences. 44. Terminations or Cancellation of Aereement. The City may terminate this Agreement if one of the following occurs. (a) Institution of proceedings in voluntary bankruptcy by the Licensee. (b) Institution of proceedings in involuntary bankruptcy against the Licensee if such proceedings lead to adjudication of bankruptcy and the Licensee fails within ninety (90) days to have such adjudication reversed. (c) If Licensee shall fail, neglect or refuse within fifteen (IS) business days and other reasonable time to cure by Licensee after receiving notice thereof from City to conform to any direction or instruction that may be property given by City or to any applicable law, ordinance of regulation of the City, County, State, or Federal government, or shall fail, neglect or refuse to pay any amount due hereunder within thirty (30) calendar days after the same shall become due or shall default in the performance of any of the material terms or provisions herein required, it shall then be lawful for City, at its option, to declare this Agreement terminated and forfeited and City may, in addition to other remedies 18 available to City, thereupon re-enter and possess itself of all the rights and privileges therefore enjoyed by Licensee, and in the event that Licensee shall remain in possession one (1) day or more after such termination or forfeiture, Licensee shall be deemed guilty of a forcible trespass. (d) If Licensee fails to provide 3 Events during each year of this Agreement, the City, in its sole discretion, may terminate this Agreement. 45. Citv's Desienee. For the purpose of this Agreement, the City's designee shall be JCD Sports Group, Inc., or its designee, unless the City notifies Licensee to the contrary. 46. This Agreement is not effective until signed by both parties. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their proper officials on the day and year first above written. ATTEST: CITY OF DELRA Y BEACH, FLORIDA By: By: City Clerk Jeff Perlman, Mayor Approved as to Form: By: City Attorney 19 WITNESSES: By: (Name printed or typed) (Name printed or typed) (Name printed or typed) STATE OF COUNTY OF The foregoing instrument was acknowledged before me this day of , 2005, by as (name of officer or agent, title of officer or agent), of (name of corporation acknowledging), a (state or place of incorporation) corporation, on behalf of the corporation. He/She is personally known to me or has produced as identification. Signature of Person Taking Acknowledgment Name Typed, Printed or Stamped 20 Exhibit "A" Black Out Dates October 1,2005 - September 30, 2006 1. EPOCH Gala September 30-0ctober 2,2005 2. Garlic Festival November 11-13, 2005 3. Christmas Tree Lighting/ Craft Show November 26, 2005 4. Chris Evert Pro Celebrity Tennis Classic (1) November 28- December 6, 2005 5. Holiday Parade December 10, 2005 6. Christmas Eve and Christmas Day December 24-25, 2005 7. First Night (2) December 30-January 2, 2006 8. Millennium Tennis Tournament (3) January 9- February 7, 2006 9. Circle on the Square (OSS Event) April 8, 2005 10. Players International Tournament April Dates TBD (6 Days) 11. Delray Affair April 21-23, 2006 12. 4th of July July 4, 2006 13. Roots Cultural Festival August 11-13,2006 14. Art and Jazz on the Avenue October 14, December 8, January 19, May 11, and June 29 (I) Requires set up time starting the Monday before the event and take down time two (2) days after the event. (2) Requires day prior to event for set up and two (2) days after for take down. (3) By contract courts have to be resurfaced and ready for practice no later than two (2) weeks prior to event. Resurfacing cannot start until 30 days after First Night. Total Black Out Days: 70 ð Initials EXHIBIT 11( INSURANCE REQUIREMENTS OF THE CITY OF DELRA Y BEACH FOR AGREEMENT WITH . shall not commence operations under the terms of this Agreement until certification or proof of insurance, detailing terms and provisions of coverage, has been received and approved by the City of Delray Beach Risk Manager. If you have any questions call (561) 243-7150. The following insurance coverage shall be required. A. Worker's Compensation Insurance covering all employees and providing benefits as required by Florida Statute 440 and including Employers Liability coverage, regardless of the size of your firm. further agrees to be responsible for employment, control and conduct of its employees and for any injury sustained by such employees in the course and scope of their employment. B. Comprehensive commercial general liability insurance to include coverage for premIses and operations, independent contractors, broad form contractual liability, personal injury, and if items are sold, products and/or liquor liability, in connection with the contractual relationship and activities being done under this agreement. The policy will be endorsed to include the City of Delray Beach and it's designees named as additional insureds. The insurance will be written on an occurrence basis with the limits of liability not less than $2,000,000.00 combined single limit per occurrence, and as an annual aggregate, covering bodily injury, property damage and personal injury. C. Motor Vehicle Liability Insurance covenng all vehicles associated with operations to include all owned, non-owned and hired vehicles. The coverage will be written on an occurrence basis with limits of liability not less than $1,000,000.00 combined single limit per each occurrence. D. The certification or proof of insurance must contain a provision for notification to the City thirty (30) days in advance of any material change in coverage, non- renewal or cancellation. shall furnish to the City, Certificate(s) of Insurance evidencing insurance required by the provisions set forth above, thirty (30) days prior to the holding of the event. If so requested by the City, certified copies of insurance policies will be provided by If any of the above coverages expire during the term of this agreement, will provide a renewal certificate at least ten (10) days prior to expiration. Mail to: City of Delray Beach, Attn. Risk Manager, 100 N.W. 1st Avenue, Delray Beach, Florida 33444. ()~ p7t1 RESOLUTION NO. 69-05 A RESOLUTION OF THE CITY OF DELRAY BEACH AUTHORIZING THE FILING OF A LAWSUIT AGAINST PALM BEACH COUNTY REGARDING THE FUNDING OF THE COUNTY'S FIRE RESCUE DISPATCH SYSTEM; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER; PROVIDING AN EFFECTIVE DATE WHEREAS the City Commission of the City of Delray Beach, on March 15, 2005, passed Resolution 16-05, which initiated the conflict resolution procedures of Chapter 164, Florida Statutes, also known as the Florida Governmental Cooperation Act, with regard to a conflict with Palm Beach County ("County") concerning the funding of the County's fire rescue dispatch system (the "County Dispatch System") through countywide revenues and the potential imposition of the County Dispatch System upon the City of Delray Beach (the "City"); WHEREAS the County operates its countywide fire rescue dispatch system (the "County Dispatch System") to handle all incoming 911 calls from the County's unincorporated areas (and from municipalities that contract to use the County Dispatch System); WHEREAS the County Dispatch System is a service and/or program that has been rendered specifically for the benefit of the property and or residents in unincorporated areas of the County (and from municipalities that contract to use the County Dispatch System); WHEREAS the City operates its own independent dispatch system that provides direct fire rescue dispatch services within the City (the same type of services that the County Dispatch System provides) and provides direct police dispatch services (something the County Dispatch System does not do); WHEREAS the City has not utilized, and does not intend to utilize, the County Dispatch System; WHEREAS the County has utilized Countywide revenue derived from all of the County's residents even though the residents and properties within the City do not utilize or derive any benefit from the County Dispatch System; WHEREAS the County's Dispatch System is duplicative and does not provide a real and substantial benefit to the taxpayers in the City (who are already paying taxes to the City to provide the same services); WHEREAS the funding of the County's Dispatch System through countywide revenues amounts to double taxation in violation of Article VIII §1 (h) of the Florida Constitution and Section 125.01(6) and (7), Florida Statutes; WHEREAS the City, pursuant to Resolution 17-05, served a petition on March 30, 2005, pursuant to Section 125.01 (6), Florida Statutes, to the Board of County Commissioners for Palm Beach County relating to the improper financing for the County Dispatch Service; ~~ ~b\~~~ ~ ~ S? ;1 WHEREAS the City, after following all of the mandatory procedures pursuant to Chapter 164, Florida Statutes, has been unable to resolve the County's improper funding of the County Dispatch System through countywide revenues; BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRA Y BEACH, FLORIDA, AS FOLLOWS: Section 1. The City Commission of the City of Delray Beach hereby authorizes the filing of a lawsuit against the County regarding the County's improper funding of the County Dispatch Service through countywide revenues. Section 2. The issues of conflict with the County regarding the funding of the County Dispatch Service, sought to be resolved include: (a) The County cannot fund the County Dispatch Service with countywide revenues derived from the County's residents, including those residents in the City; (b) The City does not derive any real and substantial benefit from the County Dispatch System; (c) The County cannot financially coerce the City to transfer a traditional municipal service, such as fire rescue dispatch, to the County by forcing the City to pay for the County's Fire Rescue Dispatch System even if it does not utilize it; (d) The County must reimburse the City for the City's proportionate share of the County's past expenditures of countywide funds for the County Dispatch Service; and (e) Any additional issues that arise during the litigation. Section 3. The City will work in conjunction with the City of Boca Raton and any other cities that elect to join in the lawsuit. Section 4. If any section, subsection, clause or provision of this resolution is held invalid, the remainder shall not be affected by such invalidity. Section 5. All resolutions or parts of resolutions in conflict herewith shall be and hereby are repealed. Section 6. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the City Commission of the City of Delray Beach this day of ,2005. CITY OF DELRAY BEACH, FLORIDA ATTEST: Mayor City Clerk ~ [ITY DF DELIAY BEA[H CITY ATTORNEY'S OFFICE :'( () '\ W I q .\VI-'\! 'E' DELRe\) BE·\CH. FLORIDA 33-1--1--1- I! I ! PIJO'\L ~h ,:,.+ ~-7()q() . F\C~l\IIL¡: 56l !27X--I-755 Writer's Direct Line: 561/243-7091 DElRAY BEACH MEMORANDUM F l 0 It I C "- Dad All-America City DATE: September 8, 2005 'IIII!TO: City Commission David Harden, City Manager 1993 2001 FROM: Susan A. Ruby, City Attorney SUBJECT: Resolution 69-05 This resolution authorizes litigation on the issue of the County using ad valorem taxes to support Countywide Dispatch. The issues to be decided in the litigation are: a.) Whether the County can fund its Fire Rescue Dispatch System with countywide revenues derived from the County's residents, including those residents in the cities of Boca Raton and Delray Beach (the "Cities"); b.) Whether the Cities derive any real and substantial benefit from the County's Fire Rescue Dispatch System; c.) Whether the County can financially coerce cities to transfer a traditional municipal service, such as fire rescue dispatch, to the County by forcing cities to pay for the County's Fire Rescue Dispatch System even if they do not utilize it; and, d.) Whether the County has to reimburse the Cities for their proportionate share of the County's past expenditures of countywide funds for the County's Fire Rescue Dispatch System. We have exhausted all attempts to resolve the issue with alternate dispute resolution procedures. ~ce this resolution on the September 12, 2005 City Commission agenda. RCI Attachment Cc: Jaime Cole, Esq. Matthew Mandel, Esq. Diane Grubs Frieser, Esq. 6~,~ · RESOLUTION NO. 69-05 A RESOLUTION OF THE CITY OF DELRAY BEACH AUTHORIZING THE FILING OF A LAWSUIT AGAINST PALM BEACH COUNTY REGARDING THE FUNDING OF THE COUNTY'S FIRE RESCUE DISPATCH SYSTEM; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER; PROVIDING AN EFFECTIVE DATE WHEREAS the City Commission of the City of Delray Beach, on March 15, 2005, passed Resolution 16-05, which initiated the conflict resolution procedures of Chapter 164, Florida Statutes, also known as the Florida Governmental Cooperation Act, with regard to a conflict with Palm Beach County ("County") concerning the funding of the County's fire rescue dispatch system (the "County Dispatch System") through countywide revenues and the potential imposition of the County Dispatch System upon the City of Delray Beach (the "City"); WHEREAS the County operates its countywide fire rescue dispatch system (the "County Dispatch System") to handle all incoming 911 calls from the County's unincorporated areas (and from municipalities that contract to use the County Dispatch System); WHEREAS the County Dispatch System is a service and/or program that has been rendered specifically for the benefit of the property and or residents in unincorporated areas of the County (and from municipalities that contract to use the County Dispatch System); WHEREAS the City operates its own independent dispatch system that provides direct fire rescue dispatch services within the City (the same type of services that the County Dispatch System provides) and provides direct police dispatch services (something the County Dispatch System does not do); WHEREAS the City has not utilized, and does not intend to utilize, the County Dispatch System; WHEREAS the County has utilized Countywide revenue derived from all of the County's residents even though the residents and properties within the City do not utilize or derive any benefit from the County Dispatch System; WHEREAS the County's Dispatch System is duplicative and does not provide a real and substantial benefit to the taxpayers in the City (who are already paying taxes to the City to provide the same services); WHEREAS the funding of the County's Dispatch System through countywide revenues amounts to double taxation in violation of Article VIII §1 (h) of the Florida Constitution and Section 125.01 (6) and (7), Florida Statutes; WHEREAS the City, pursuant to Resolution Delray Beach, served a petition on March 30, 2005, pursuant to Section 125.01(6), Florida Statutes, to the Board of County Commissioners for Palm Beach County relating to the improper financing for the County Dispatch Service; . . WHEREAS the City, after following all of the mandatory procedures pursuant to Chapter 164, Florida Statutes, has been unable to resolve the County's improper funding of the County Dispatch System through countywide revenues; BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. The City Commission of the City of Delray Beach hereby authorizes the filing of a lawsuit against the County regarding the County's improper funding of the County Dispatch Service through countywide revenues. Section 2. The issues of conflict with the County regarding the funding of the County Dispatch Service, sought to be resolved include: (a) The County cannot fund the County Dispatch Service with countywide revenues derived from the County's residents, including those residents in the City; (b) The City does not derive any real and substantial benefit from the County Dispatch System; (c) The County cannot financially coerce the City to transfer a traditional municipal service, such as fire rescue dispatch, to the County by forcing the City to pay for the County's Fire Rescue Dispatch System even if it does not utilize it; (d) The County must reimburse the City for the City's proportionate share of the County's past expenditures of countywide funds for the County Dispatch Service; and (e) Any additional issues that arise during the litigation. Section 3. The City will work in conjunction with the City of Delray Beach/City of Boca Raton and any other cities that elect to join in the lawsuit. Section 4. If any section, subsection, clause or provision of this resolution is held invalid, the remainder shall not be affected by such invalidity. Section 5. All resolutions or parts of resolutions in conflict herewith shall be and hereby are repealed. Section 6. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the City Commission of the City of this day of ,2005. CITY OF DELRA Y BEACH, FLORIDA ATTEST: Mayor City Clerk [IT' DF DELRA' BEA[H ~ CITY ATTORNEY'S OFFICE 200 NW 1st AVENUE· DELRAY BEACH. FLORIDA 33444 TELEPHONE 561/243-7090· FACSIMILE 561/278-4755 Writer's Direct line. 561/243-7090 DELRA Y BEACH f l 0 . I D A ....... MEMORANDUM AJl.AmerIca City ~ II J!. DATE: September 8, 2005 TO: City Commission David T. Harden, City Manager !Ji0 FROM: Terrill Barton, Assistant City Attorney SUBJECT: Authorization to Quiet Title Property Located at 602 S.W. 1st St The City of Delray Beach Department of Community Improvement has decided to use the following City property for relocation housing for the residents of Carver Square: 602 S.W. 1st Street, PCN # 12-43-16-01-16-014-0140 Therefore, our office is hereby requesting authorization to pursue quiet title action on the aforementioned parcel in order to make the title to this parcel insurable. Please place this matter on the September 12, 2005 City Commission agenda for consideration as a special meeting item. Please let me know if you have any questions. Thank you. TCB:smk cc: Chevelle Nubin, City Clerk Ôr,3 .....: ~ ," . ~:'~~ UJ . .... ~t. · ~ " _ __ __A___ - - -------~ - -~-~ , ~.CL.~ .. -. . " '. "'-oow---~ :~ ,. tl'..._~ " - III .... 11_....,. k~" . ::¡:: > 0 l..) 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C) -- +-' .t: CD 0 -c +-' C) .... s:: C) -c :::::s ns s:: :J 0 - -- In 1:= I- ~ :J 0 -c (.Ø ~ :1 0 ~ CD 0 m - N CD I .c It) l- E 0 -- 0 +-' N g/5; (The official copy of Resolution No. 24-05 is on file in the City Clerk's office.) The City Manager stated the major adjustments are moving money out of contingencies into personnel accounts to take care of the two union contracts (Blue Collar and Police). In addition, he stated because of the early retirement window, there were retirements that were not budgeted for Mr. Levinson moved to approve Resolution No. 24-05 (Mid- Year Budget Adjustment), seconded by Ms. McCarthy Upon roll call the Commission voted as follows: Mrs. Archer - Yes; Mr. Levinson - Yes; Ms. McCarthy - Yes; Mayor Perlman - Yes; Mrs. Ellis - Yes. Said motion passed with a 5 to 0 vote. 9.K. REQUEST TO INCREASE PENSION PAYMENTS TO RETIRED POLICE OFFICERS AND FIREFIGHTERS: Provide direction regarding a request to increase pension payments to retired Police Officers and Firefighters Captain Lorenzo Brooks, Retired Police Captain with the Delray Beach Police Department, stated in the past the Commission has been very generous in assisting the retired Police and Firefighters who do not have a cost of living benefit with their pension plan. Captain Brooks stated he is speaking on behalf of numerous retired Police and Firefighters to try to get another increase to assist those officers who were employed by the City of Delray Beach for approximately 20-30 years and do not have a cost of living benefit as the Police and Firefighters do now. The City Manager stated if the Commission decides to move forward with this and ordinance would have to be drafted for Commission approval to amend the Pension Plan. Mr Levinson suggested it may be more appropriate to address this during budget time and not now at mid-year. Alex Semosh, 902 S. Swinton Avenue, Delray Beach, stated he is a retired Lieutenant with the Delray Beach Fire-Rescue Department (30 years) and thanked the Commission for considering this issue. It was the consensus of the Commission to review this in context of the fiscal year 2005/2006 budget. 9.L. SETTLEMENT OFFER IN WONDRA v. CITY OF DELRA Y BEACH: Consider a Settlement Offer in the amount of $34,000.00 in Wondra v. City of Delray Beach Staff recommendation is acceptance. Mrs. Ellis moved to approve to accept the Settlement Offer in the amount of $34,000.00 in Wondra v City of Delray Beach, seconded by Mrs. Archer Upon roll call the Commission voted as follows: Mr. Levinson - Yes; Ms. McCarthy - Yes; Mayor Perlman - Yes; Mrs. Ellis - Yes; Mrs. Archer - Yes. Said motion passed with a 5 to 0 vote. - 25- 06/07/05 A~~~~\ -::L.~N\~~ - ~S.~ City of Delray Beach Memo 1b: City Commission Pram: City Manager ~1 CÇ; .... June 3, 2005 lie: Request to Increase PenSion Payments to Retired Police Officers and Firefighters Attached is a request from a police officer and firefighter who retired prior to September 30, 1993 (when the Police and Fire Pension Plan was amended to provide for annual COLA's) that the City increase pension benefits for those retirees. The Police and Fire Pension Board has endorsed this request. Pension benefits for these employees have been Increased by the City in the past. This last occurred in 1999. Also attached IS an actuarial study giving the cost to the City for Increasing these benefits 5% (the minimum recommended by the Board) and 15.7% (the increase in the Consumer Price Index since 1999). The annual cost to the city for this increase would be either $43.340 or $149.692 for the next 15 years. This is a total cost to the City of $650,100 or $2,245,380 respectively. These Increased costs would be in addition to the $556,121 additional contribution required for this year above what we initially budgeted, due to state requirements, and the additional $611,313 increase we are required to make for FY2006. If an increase IS granted to police and fire retirees, then the same increase should also be granted to general employees We have not determined the actuarial costs for a general employee increase. It is my personal opinion that it is one's own responsibility to do financial planning for one's retirement. including the effects of inflation, and that one should not looks to one's former employer to increase ones pension benefits beyond what was agreed to when one was an active emptoyee. Recommendation: Commission discretIOn. 1 '1K " . . . . . . 6304 Indian Wells Blvd. Boynton Beach, PI 33437 March IS, 200S Mr. Bill Adams, Chainnan Dekay Beach Police And Firefighters Pension Board 100 N. W. 111 Avenue Dekay Beach, FI 33444 Dear Mr. Adams: We are writing this letter on behalf of police and fire retirees who retired ftom the city prior to September 30, 1993. The retirees are seeking your support and approval for a reasonable increase In their monthly pension benefit, whicl1 is surely needed. Our last increase was about six years ago in 1999, Prior to that, it was more than ten years ago in 1988. The problem with the retirees Wlder the previous pension plan is that there is no buih in cost of living in it , and the only way this group can receive any additional monthly increase is to Periodically ask the city commission. As you are aware, the police officers and firefighters who Retired since 1993, not only have an overall better pension plan, but also a yearly cost ofliving benefit. We respectfully ask that the pension board discuss a request of at least a 5% increase to the retirees' monthly checks at your next scheduled meeting and forward your recommendation to the city manager and the city commission for such an increase. The retirees feel that this request is Very fair under the circumstances because of the comparable differences in benefits and the last Increase was about six years ago. If you need additiooal information please call us at 561-735·1119 (Lorenzo Brooks) or call Al Semosh at 561·272-4856. Thank you very mum for your assistance in this matter. ~&J1 roo, . Captain Deliay ch Police Dept. txfo/O¥Á~cJ Alexander Sernosb, Retired Lieuteoant Delray Beach Fire Dept. ~ ------ I . . . . ~l!e@N!D MAY 2 - 2005 BOlll"d 01 Trustees CìTY J\~ANAGEtt CITY OF DELRAY BEACH POLICE AND FIREFIGHTERS RETIREMENT SYSTEM do Anne Woods Pension Administrator .~ 609 Homewood Boulevard Delray Beach, Florida 33445 Telephone (561) 243-4707 .~ MEMORANDUM . S..J()-()S"Øj TO: David Hardin, City Manager FROM: Chief William Adams, Chairman 8 SUBJECT: Benefit Enhancement for Retirees (Prior to SeDtember 30. 1993) DATE: April 27, 2005 The Board of Trustees of the City of Delray Beach Police and Firefighters' Retirement System held its monthly meeting on April 20, 2005. One of the items on the agenda was a request &om two retirees asking that the Board support an increase for those Police and Fire Department officers who retired prior to September 30, 1993. (Letter attached) As you know, these individuals have no contractual benefit enhancement. However, the City Commission has periodically authorized adjustments to their monthly benefits recognizing that the cost of basic essentials such as health care and food has gone up drastically over the last several years. The Board discussed this issue with the two retirees and approved a motion to endorse an adjustment to the benefits this group of retirees receives, Because it has been at least five years since any increase has been approved by the City Commission, the Board feels that an increase of at least 5% would be justified, Please feel free to contact me if you need additional infonnation or have any questions. Your assistance in this matter is appreciated. C: Lorenzo Brooks AI Semosh Attachment ---- ~ ' . . of . ~ '"a:ð-..~? my DF DELAAY BEA£H ~'" -~"<' ~ '<\. .........- ~.... IA" " . , -, DElRA Y BEACH . , :"";-;:'~;:: ,:> .~<..~:.,";' >~<~,~.. ,..' ~ K: ~",.; . '~D.'D4 . . . ~ .....-~ A,_.. . ... ~ .- "-:-:..£1'. tied 100 N.W. 1st AVENUE· DELRAY BEACH, FLORIDA 33444 ·561/243-7000 ANiœrlcaCItJ 'IIII! May 12, 2005 1993 Gabdel, Roeder. Smith and Compøny ORIGINAL ALSO FAXED TO: 8SU2S.oou 2001 A1TENTlON: J. Stephen Palmquist 301 East Las 0I8s Boulevard, Suite 200 Fort Lauderdale, Florida 33301 SUBJECT: Police and Flreftgtrters Retirwnent System COLA for Relfrees prior to September 30, 1993 REQUEST FOR COST OUT De8r steve: We 81'8 In nM:eIpt of a tequest for consideration 01 an Increase of at least 5% for Retirees prior to September 30, 1993. we ask that you please complete the cost out for this request. Should you have any questions or need any further lnfOrmaUon, please feel free to contad me at !581- 243-7118 (or via &-mail at safJorol@cl.delrav-beach.fl.us). SIncerely, ~~ ~ M. Safford DIrector of Finance Ikm8 (I) MIIICf 011 AIc)'II/Id Pripw THE EFFORT ALWAYS MATTERS ---- I J' '~I h " "'jl c ~=- ~ GABRIE.... ROEDER" SMITH. COMPANY CONultllnb a Actu...... 301 East Las OIas Blvd.. Suite 200. Ft. Lauderdale, FL 33301-2254.954-527-1616. FAX 954-525-0083 May 23, 2005 Mr. Joseph Safford Director of Finance City of Delray Beach 100 Northwest 11t Avenue Delray Beach, Florida 33444 Re: Supplemental Actuarial Valuation Report for Police and Firefighters Retirement System Dear Joe: As requested per your May 12, 2005 letter, we have prepared the enclosed Supplemental Actuarial Valuation Report showing the cost effect of the following changes: 1. Granting a one-time cost-of-living adjustment of 5% to those members who retired before September 30.1993. 2. Granting a one-time oost-of-IMng adjustment of 15.7% to those members who retired before September 30, 1993, where 15.7% is the actual CPI increase (through March 2005) since the last one-time COLA on August 1, 1999. The first item results in an annual increase in the required employer contribution of $43,340. or 0.28% of covered payroll. The second results in an annual increase in the required employer contribution of $136,082, or 0.88% of covered payroll. The baseline for these figures is the revised October 1, 2004 Actuarial Valuation Report. Annual pensions for the 50 affected retirees would increase by $47,674 if a 5% increase is granted or by $149,692 if a full CPI increase of 15.7% is granted. The average increase in annual pension would be $953 under a 5% increase or $2,993 under a 15.7% increase. We welcome your questions and comments. Sincerely yours, ... ~~ J. Stephen Palmquist JSP/ss Enclosures ---~ ---- SUPPLEMENTAL ACTUARIAL VALUATION REPORT Plan City of Delray Beach Police and Firefighters' Retirement System Valuation Date October 1. 2004 Date of Report May 16. 2005 Report Requested by Director of Finance Prepared by J. Stephen Palmquist Group Valued Inactive members who retired before September 30,1993. Plan Provisions Being Considered for Change Present Provision Before Chanae 1. Inactive members who retired before September 30, 1993 received their last benefit increase in August 1. 1999. Prooosed Chanaes 1. Inactive members who retired before September 30, 1993 would receive a benefit increase of 5%. 2. Inactive members who retired before September 30. 1993 would receive a benefit Increase of 15.7% to reflect the actual increase in the CPI since August 1, 1999. Particioants Affected Inactive members who retired before September 30,1993. Actuarial Assumptions and Methods Same as October 1, 2004 Actuarial Valuation Report with no exceptions. Some of the key assumptions/methods are: Investment retum - 8.5% per year Salary Increase - 6.0% per year Cost Method - Entry Age Amortization Period for Any Increase In Actuarial Accrued Liability 15 years Summary of Data Used In Report See attached page. Actuarial Impact of Proposal(s) See attached page( s). Special Risks Involved With the Proposal That the Plan Has Not Been Exposed to Previously None. 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Message Page 1 of2 01( Harden, David ð7Uf -_.~~~~--------~-~~~~ To: City Commission Subject: General Fund Changes This includes all changes made to general fund departments since publication of the budget book and the adjustment to the 8.0000 mills. These are the changes since the proposed budget book for revenues: 1. Intergovernmental Revenue Increased $80,000 due to contribution from MPO for City Shuttle Service. 2. Misc Revenues increased $165,030 due to a CRA Contribution of $167,600 for City Shuttle Service and a decrease of $2,570 in Stormwater revenue due to internal billing. 3. Transfers increased $298,000 due to an additional $300,000 transfer from the general construction fund ($100,000 from library and $200,000 from the State) and a $2,000 decrease in the transfer from the Stormwater Utility Fund. 4. Increase of $613,650 in ad Valorem tax revenue to reflect 8.000 millage. 5. Increase in $35,000 in Charges for Services for Increase In anticipated parking fees. These are the expenditure changes: 1. $682,650 decrease in worker's compensation proposed premiums. 2. $422,200 increase in general employee pension proposed premiums. 3. $6,600 increase for furniture in City Manager's Budget. 4. $24,430 increase In Finance Admin for document scanner. 5. $15,300 Increase in MIS for Help Desk Software. 6. $2,570 decrease In Admin Services due to Stormwater Internal Billing. 7. $3,380 increase in Police Admin for two radar guns. 8. $8,000 increase in Fire Admin for FS#l ramp repair. 9. $2,500 increase in Fire Operations for Fitness Assessment Program and Hazmat Software Upgrades. 10. $8,000 decrease in Fire Safety for less expensive Fire Inspector Vehicle. 11. $327,600 increase in Planning and Zoning for City Shuttle Service 12. $128,290 increase in Building Inspection for transfer of 2 general maintenance workers and a crew leader from P&R for Clean & Safe Program (plus upgrade of Crew Leader to Streetscape Supervisor). 13. $111,300 decrease in P&R Admin due to transfer of 2 general maintenance workers and crew leader. 14. $3,330 increase in P&R Out of School for tennis instruction and African Drumming Class. 15. $1,500 increase In Athletics for ribbon cuttings. 16. $13,390 increase in Pompey Park for Building Bridges Program College Tour. 17. Grants decreased $11,000 from amount set in proposed book. 18. $35,000 increase in debt service for parking meter replacement. 19. $486,100 increase in transfer to the General Construction Fund for assessment districts. 20. $490,610 increase in the contingency. 21. $132,520 increase in Police Investigation for 2 new CSOs and vehicles. 9/9/2005 'N S :-t Message Page 2 of2 22. $31,310 decrease in each Division I, II and III for vacant officer position for 3 months. 23. $380 increase in Fire Admin for adjusted stormwater assessment fee for Depot Rd. property. Lisa Herrmann Budget Analyst (561) 243-7128 9/9/2005